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The following graph shows the demand (D) for cable services in a particular town. The graph also shows the marginal revenue (
The natural monopolist will maximize economic profit by choosing a price of and a quantity of If the government wants to purs
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Answer #1

- cost of production such that a single producer is more efficient than a large number of producers.

By choosing a price of P3 and a quantity of Q1.

It should set the price for cable subscriptions at P1...... The cable company will incur losses and exit in the long run

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